SINGAPORE: The ​dollar sank to ⁠its lowest level in a month while the euro, ‌yen, Aussie and kiwi rallied hard in Asian trading on Wednesday after ​U.S. President Donald Trump said he had agreed to a two-week ceasefire ​with Iran.

The yen strengthened ​0.7% against the greenback to 158.50 per dollar. The euro was up 0.7% at $1.1677, while the British pound ⁠appreciated 0.8% to $1.3403.

The Australian dollar climbed 1.2% to $0.7063and its New Zealand counterpart jumped 1.1% to $0.5795.

Trump had earlier threatened widespread attacks on Iran's civilian infrastructure, drawing international condemnation after issuing an extraordinary ​warning that "a ‌whole civilization will die ⁠tonight" if ⁠his demands were not met.

Investors' risk appetite rapidly returned after the ceasefire ​announcement, less than two hours before ‌Trump's deadline for Tehran to reopen the ⁠Strait of Hormuz would have expired.

If the Strait is reopened, "we could be able to consolidate the risk-on rally that we're seeing," said Ray Attrill, head of FX strategy at National Australia Bank in Sydney.

"But a lot has to happen in the next 14 days," he said, adding that currencies would be vulnerable to a retracement of their recent moves in ‌the interim. "Markets still need to proceed with a degree ⁠of scepticism."

The U.S. dollar index, which measures ​the greenback's strength against a basket of six currencies, weakened for a third consecutive day to 98.943, the lowest since March ​11.

Cryptocurrencies rallied, ‌with bitcoin advancing3.2% to $71,514.03, and ether climbing5.7% to $2,235.35. (Reporting ⁠by Gregor Stuart Hunter ​in Singapore; Editing by Matthew Lewis and Kevin Buckland)